POLITICO Pro, a subscription-based service of POLITICO, spoke to L.A. Care CEO John Baackes in "Montana insurer's victory may put taxpayers on the hook for big ACA payments". The piece reports on the federal court ruling that found Montana Health Co-Op, a nonprofit insurer, was entitled to $5.2 million in cost-sharing reduction payments that were cut off by the Trump administration last year.
The cost-sharing reduction payments were designed to help insurers reduce out-of-pocket costs for the most indigent and unwell Affordable Care Act enrollees. The administration ended payments in October of 2017, citing that they were illegal. Insurers have brought the issue to court, maintaining there's a statutory obligation to make good on the promised payments.
"We're hopeful that it sets a precedent," said John Baackes, CEO of L.A. Care Health Plan, which has its own CSR lawsuit pending in federal court. "It's just one judge in one district.”
About L.A. Care Health Plan
L.A. Care Health Plan is a public entity and community-accountable health plan serving residents of Los Angeles County through a variety of health coverage programs including L.A. Care Covered™, Medi-Cal, L.A. Care Cal MediConnect Plan and PASC-SEIU Homecare Workers Health Care Plan. L.A. Care is a leader in developing new programs through innovative partnerships designed to provide health coverage to vulnerable populations and to support the safety net. With more than 2 million members, L.A. Care is the nation’s largest publicly operated health plan.